Goldplat operating profit slides in third quarter.


Goldplat reported a combined operating profit of £0.69m for the third quarter ended 31 March on Tuesday, down from £1.62m in the same period last year, reflecting a decline in profitability at its Ghana operations and continued supply challenges in South Africa.

  • Goldplat
  • 27 May 2025 15:36:53
Goldplat

Source: Sharecast

Group profit before tax came in at £0.77m, supported by lower interest costs and a £90,000 foreign exchange gain.

The AIM-traded firm said its Ghanaian operation generated an operating profit of £0.68m, down from £1.5m in the third quarter of the 2024 financial year, as a shift in regulatory requirements altered its business model, limiting turnover to domestic production.

Investment of £0.9m had been made so far this year to expand plant capacity and increase gold recovery, with a further £0.2m planned.

Goldplat said it was also adjusting to new local rules introduced by Ghana’s Gold Board, which now required the sale of a portion of dore gold within the country.

In South Africa, operating profit was flat at £10,000, with a pre-tax loss of £15,000, as the business continued to contend with lower by-product supply from mining clients.

However, production remained stable and cost controls were tightened.

The operation was processing trial batches of platinum group metals to broaden its material base and remains in active discussions with producers to expand market share in the fourth quarter.

Progress on the tailings storage facility (TSF) project continued, with approvals targeted by the end of 2025.

Elsewhere, the company said it had started an initial investment of £0.2m in Brazil to support gold recovery operations using local proceeds.

Group cash remained strong at £3.15m at the end of the quarter, earmarked for working capital and capital expenditure in Ghana and Brazil, as well as intercompany loan repayments.

“I am pleased with what our teams have achieved in the three business units during the third quarter,” said chief executive officer Werner Klingenberg.

“In South Africa, we are seeing positive results on Gold and PGM sourcing activities and continue streamlining the operations to respond to lower visibility of supply of material.

2In Ghana, the team continued its implementation and management of several new processes and procedures to focus the business on local beneficiation and manage engagement with authorities with regard to new changes and requirements.”

Klingenberg said the company was continuing to see a strong supply of higher-grade material out of South America, adding that it would continue its “steady investment” towards establishing operations in Brazil.

“The focus remains on further reducing inventory levels in Ghana, whilst increasing cash on hand, progressing the approval of the TSF pipeline, continuous cost management efforts in South Africa, increasing market share in South Africa and expanding in Brazil.

“This should provide stability in working capital requirements and ultimately enhance the ability to return cash to shareholders.”

At 0923 BST, shares in Goldplat were up 0.96% at 6.56p.

Reporting by Josh White for Sharecast.com.


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